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snow_lady [41]
4 years ago
6

A firm has issued $5 par value preferred stock that pays a $0.80 annual dividend. The stock currently sells for $9.50. In calcul

ating WACC, what should one use for the value of the firm's preferred stock
Business
1 answer:
Aloiza [94]4 years ago
7 0

Answer:

$9.50

Explanation:

In the given case, the value of the firm preferred stock is equal to the market value price or selling price of the preferred stock

In mathematically,

Value of the firm preferred stock = market price or selling price of the preferred stock

Value of the firm preferred stock = $9.50

It only consider the market price of the preferred stock

All other information which is given is not relevant. Hence, ignored it

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Issues of growth are generally considered in: Multiple Choice neither the short-run nor the long-run frameworks. the short-run f
liraira [26]

Answer:

the long-run framework.

Explanation:

In Economics, Growth can be defined as an increase or rise in the level of output and production of goods and services over a specific period of time by a business entity.

Issues of growth are generally considered by economists in the long-run framework because growth itself is a long-run phenomenon in economics.

A long-run growth refers to the continuous and sustained increase in the level of output of goods and services or quantity of production that a business is able to achieve.

Hence, all of the four factors of production affects the level of growth that is being experienced by an individual or organization. These factors are;

1. Capital.

2. Labor.

3. Land.

4. Entrepreneur.

<em>In a nutshell, business owners and economist usually consider the growth of a business as a long-run phenomenon rather than as a short-run phenomenon. </em>

7 0
3 years ago
Saleh, an accountant, is the sole shareholder of Turquoise Corporation, a C corporation. Turquoise is a personal service corpora
VashaNatasha [74]

Answer: $82,500

Explanation:

Saleh's salary for fiscal year ending September 30 = $330,000

Salary that should be paid between October 1 - December 31, if the corporation is to continue to use it's fiscal year without negative tax effect.

To avoid negative tax effect, the Saleh's salary should be atleast equal to the amount being given for the fiscal year which ended in September 30.

October 1 - December 31 = 3 months

Saleh's monthly salary = total slary during fiscal year ÷ 12

$330,000 ÷ 12 = $27,500

October 1 - December 31 = $27500 * 3 = $82,500

3 0
3 years ago
On January 1, 2015, East Lansing, Inc, issues $2,000,000 of 10 percent, 5-year bonds that pay interest of $100,000 semiannually.
Trava [24]

Answer:

The answer is option D

Explanation:

The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.

First we need to determine the semi annual coupon payment, periods and YTM.

Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000

Semi annual periods = 5 * 2 = 10

Semi annual YTM = 0.08 * 6/12 = 0.04

Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04]  +  2000000 / (1+0.04)^10

Bond Price = $2162217.916

The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.

5 0
4 years ago
Charles is planning a trip to Guatemala. He has allocated $415 for spending money. If the exchange rate from US dollars to Guate
svet-max [94.6K]
A. its the answer  3,533.10 quetzals
4 0
3 years ago
Read 2 more answers
A charge nurse is delegating a task. The nurse understands which of the following represents effective delegation? Select all th
AlekseyPX

The nurse represents that effective delegation include:

  • Delineating the desired outcomes of the delegation.
  • Asking the nurse if they are capable of completing the delegated task.
  • Monitoring how the delegated task is being accomplished.

<h3>How to illustrate the information?</h3>

Effective delegation means planning ahead when identifying tasks to be accomplished. Assess the situation, and clearly delineate the desired outcomes.

Monitoring how the task is being accomplished is considered effective delegating.

Learn more about delegation on:

brainly.com/question/10708236

#SPJ1

7 0
2 years ago
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